When is the Right Time for Your Clients to Start Thinking About an Exit Strategy? Hint: Now!

Article published Vetpartners.org

Most veterinary practice owners think about an exit strategy only when they’re ready to leave, but here’s a critical insight: The best time for a business owner to start planning is the day they open their doors. A well-thought-out exit strategy can take five to ten years to build, and the longer someone has to shape it, the more valuable it will be.

Why plan early?

Many practice owners are wrapped up in the daily grind—managing employees, balancing budgets, and putting out fires. It’s easy to push exit planning to the back burner. But without early planning, exiting can become a daunting task, with a maze of systems and structures needed to make the transition seamless. Think of exit planning as an investment in a business’s future health and value.

By establishing solid systems early, a business owner is setting up their practice to operate independently without needing them at the center. An owner should imagine owning a business that can run smoothly without their constant oversight. This freedom makes a practice more attractive to potential buyers and allows the owner to step back when they’re ready—on their terms.

Building a self-sustaining practice

The goal of any successful exit strategy is to create a strong practice, transferring goodwill from the owner to the business itself. If a practice’s success relies heavily on the owner’s involvement, its value will be limited to what they can personally offer. On the other hand, a “turnkey” practice—one with systems, processes, and a strong brand identity that anyone can step into—is far more appealing to buyers and future leaders.

For some, the idea of exiting without selling is equally compelling. This approach allows a practice owner to step back from daily operations while keeping ownership. They may still take on specific cases or oversee decisions, but the practice no longer depends on them. Instead, their role becomes optional—a sign of a strong business foundation.

 The “who” factor: Building a team early

A strong exit strategy isn’t only about processes; it’s about people. As a practice owner starts planning, they should consider their team as the engine that will drive the business forward. Who will continue the mission after they’re gone? Who will grow with the company as the industry changes? The earlier a practice owner starts building a reliable, skilled, and aligned team, the better prepared they’ll be to exit smoothly.

A team is more than just employees—they’re partners in the practice owner’s vision, the ones who will take on and continue the legacy they leave. Investing time and effort into finding the right people, training them well, and fostering loyalty will make all the difference when an owner is ready to step back. With the right team, they can have peace of mind knowing that their business will thrive even in their absence.

The benefits of early planning: Efficiency and profit

When a practice owner starts planning their exit from day one, they’re setting themself up for a successful transition and making their practice more efficient in the meantime. A solid, strategic foundation means less time spent managing chaotic daily tasks and more time focused on growing and optimizing a business.

Plus, with early planning, a practice owner is also building profitability. Knowing their “why” is the first step in aligning their business to maximize its potential. Once an owner understands their purpose, they can develop the “how,” “where,” and “who” to match. This clarity helps them run a more effective business with substantial profit margins and a clear path forward.

A five-year strategy for lasting success

Building an exit strategy isn’t an overnight task—it’s a multi-year process of refining, adjusting, and growing. A five-year timeline is a solid benchmark for establishing the systems and processes a practice needs to operate independently. During this time, a practice owner should focus on creating streamlined operations, empowering their team, and ensuring their practice’s value is embedded in the business, not their personal brand.

Continual improvement is critical. Owners should regularly assess their systems, update their procedures, and ask themselves how they can make things run even more smoothly. They should consider core metrics, KPIs, and benchmarks as tools to help gauge their progress—not as measurements to limit or discourage them. They should also remember to compare their progress to where they began, not where others are.

As Maya Angelou wisely put it, “Do the best you can until you know better. Then, when you know better, do better.”

Start now, gain freedom later

Early preparation gives practice owners flexibility, control, and peace of mind whether they plan to exit in five, ten, or twenty years. A well-planned exit strategy ensures they can leave their business on their terms, knowing it’s in a solid position to thrive without them.

Guide your clients to start thinking about their exit now. Help them plan their systems, build their team, and structure their practice to operate independently. The time they invest now will pay dividends down the road, creating a legacy they can proudly pass on.